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Valued at a market cap of $12.3 billion, Akamai Technologies, Inc. (AKAM) is a global cybersecurity and cloud computing company. Based in Cambridge, Massachusetts, the company develops and provides solutions for global enterprises to build, secure, and accelerate their applications and digital experiences.
Companies valued at $10 billion or more are generally labeled as “large-cap” stocks and Akamai Technologies fits this criterion perfectly. The company provides a comprehensive defense to safeguard enterprise data and applications everywhere with its full-stack cloud computing solutions, delivering performance and affordability on the world's most distributed platform.
The cloud services provider dropped 25.9% from its 52-week high of $109.98. Shares of AKAM have dipped 15.9% over the past three months, underperforming the iShares U.S. Technology ETF’s (IYW) 11.2% decrease.
On a YTD basis, AKAM is down 14.7%, performing weaker than IYW’s 9.3% dip. Moreover, over the past 52 weeks, Akamai Technologies has slumped 25.6%, lagging behind the IYW’s 6.9% rise.
Despite some fluctuations, AKAM has been trading below its 50-day and 200-day moving averages since late February.
Despite reporting better-than-expected Q4 2024 adjusted EPS of $1.66 and revenue of over $1 billion on Feb. 20, shares of Akamai Technologies slid 21.7% the following day. The decline was driven by weak revenue guidance for 2025, which signaled a significant slowdown in demand. The company projected full-year revenue between $4 billion and $4.2 billion, missing Wall Street estimates. Additionally, its adjusted EPS forecast of $6 - $6.40 disappointed investors, leading to a sharp sell-off.
In contrast, rival AvePoint, Inc. (AVPT) has outpaced AKAM. Over the past 52 weeks, AVPT shares soared 86.9%. On a YTD basis, AvePoint has declined 10.5%.
In spite of Akamai Technologies' underperformance over the past year, analysts are moderately optimistic about its prospects. AKAM has a consensus rating of “Moderate Buy” from the 20 analysts covering the stock and, as of writing, is trading below the mean price target of $104.84.
